7.09.2018

Dr Pepper Snapple Group closes its run







Dr Pepper & Keurig Merger Nears Completion, Forms Board
Excerpt:

Dr Pepper Snapple Group, Inc. DPS and Keurig Green Mountain have announced the board of directors of the new company - Keurig Dr Pepper - after the shareholders of Dr Pepper unanimously voted in favor of the merger deal on Jun 29. With other necessary regulatory approvals for the deal already obtained in the United States and Canada, the companies are on track to close the transaction on Jul 9. Moreover, on Jul 10, Keurig Dr Pepper will start trading on the New York Stock Exchange, under the new ticker symbol - "KDP".

This merger announcement dates back to January 2018 when the leading coffee maker, Keurig Green Mountain, Inc., agreed to buy Dr Pepper Snapple. Under the terms of the deal, the company's shareholders will receive a special cash dividend of $103.75 per share, making the deal worth $18.7 billion. Dr Pepper Snapple's shareholders will retain 13% ownership of the combined entity while Keurig shareholders will own 87%.

Previously, it was revealed that European investment fund JAB Holding will make a $9-billion equity investment to finance the transaction. Also, Mondelez International, Inc. MDLZ , JAB Holding's partner in Keurig, was about to have 13-14% stake in the merged entity.

The combined company, Keurig Dr Pepper, will have $11 billion in combined pro forma revenues and will realize $600 million in synergies on an annualized basis by 2021. This will make it the seventh-largest company in the U.S. food and beverage sector, and the third-largest non-alcoholic beverage company. The company's portfolio will contain a number of iconic brands, including Dr Pepper, 7UP, Snapple, A&W, Mott's, Canada Dry and Clamato, among others. The merged entity is likely to gain from Dr Pepper Snapple's distribution network while Keurig's online presence will boost sales through digital platforms like Amazon.com, Inc.  In fact, analysts are of opinion that the combined company can pose tough competition to beverage giants, including The Coca-Cola Company .
Comment: Purchased a lot back in March 2012 for $ 38.91. The merger just completed
If I understand this correctly, tomorrow I will have 100 shares of KDP which will trade at approx. $ 19.91. New website
8:05am Central update
Good enough for Forrest!



Posted by Jim Peet at 7/09/2018 06:27:00 PM

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